Soft churn
Soft churn is the stage where a customer has stopped paying or using the product but has not formally cancelled. It covers failed payments inside a grace period and accounts that have gone quiet. Left alone it often becomes hard churn, so it is an early-warning signal rather than a loss yet.
How to read it
Define the grace period explicitly, for example how many days after a failed payment an account still counts as active. That choice changes reported churn and MRR, so it should be a stated policy rather than an accident of the billing system.